Trends in Asset Management
The Rise of Alternatives
The rapid growth and rising popularity of alternative investments, which we define as assets that aren’t correlated to the broader capital markets, continues to be an important global storyline. State Street Global Advisors (SSGA) is committed to meeting the strong demand we continue to see from institutional investors, and increasingly their retail counterparts, for these non-traditional strategies. In the following commentary, SSGA CFO and Global Head of Strategy Keith Crawford takes a closer look at alternatives, exploring some of the major trends driving their growth and pondering what the future could hold—both for the asset class and the industry at large.
Over the past decade, the forces that traditionally drive global markets forward, in our view, have acted unlike anything we have witnessed in the preceding 40 years. As a result, most of the world’s capital markets have experienced liquidity and credit crises; coupling implications; excessive government deficits and debt; anemic interest rates; underfunded pension plans; and limited advancement and growth of emerging markets.